The proposed bill, S. 306, seeks to amend the South Carolina Code of Laws by adding Section 12-6-3830, which establishes a tax credit for taxpayers whose children attend qualifying private schools, parochial schools, or home schools for grades K-12. The tax credit amounts to $2,000 for the 2025 tax year, $4,000 for 2026, $6,000 for 2027, and $8,500 for 2028 and subsequent years, with the credit becoming refundable starting in 2027. To qualify, schools must meet specific criteria, including providing an affidavit of their K-12 status and making annual financial statements available to families. Additionally, taxpayers claiming this credit cannot also claim the exceptional needs tax credit in the same year.

The bill also outlines various provisions regarding eligibility and enforcement. Taxpayers must provide proof of tuition payment to claim the credit, and those whose children attended public school for more than 44 days in the current tax year are ineligible. The bill includes measures against fraudulent claims and allows parents to assert violations in court, with specific limits on noneconomic damages. Furthermore, the bill mandates reductions in State Aid to Classrooms for each student who transitions from public to qualifying private or home schools, with specified amounts for each school year. The Attorney General is granted authority to enforce compliance with the new provisions, and the bill will take effect upon the Governor's approval.

Statutes affected:
02/04/2025: 12-6-3830
Latest Version: 12-6-3830